In the manufacturing industry, labor costs often represent the second-largest expense after raw materials. Yet, do you know exactly what you are paying for? Between the moment an employee enters the changing room and the actual start of work on the line, margins evaporate.
For this first installment of our "1 Month, 1 KPI" series, we are tackling the foundation of the productivity pyramid: Logged Hours. An indicator that seems simple on the surface, but when poorly managed, becomes a major source of hidden costs.
Why are "Logged Hours" often a blind spot?
Many CFOs and Production Managers believe they have a handle on this figure because they see the total paid hours at the end of the month. This is a mistake. Knowing how much you pay is one thing; knowing if those hours were actually available for production is another.
If your operators are present for 8 hours (Logged Hours), but shop floor organization (meetings, movement, changing rooms, unmanaged breaks) only allows them to be at the machine for 6.5 hours, you have a "leak" of 18% of your theoretical capacity before the first work order even begins.
What do we mean by "Logged Hours"?
The goal is to return to fundamentals:
Logged Hours correspond to the total attendance time recorded by the operator within the factory premises.
- Data Source: Clocking in (at a kiosk or physical time clock) upon entry and clocking out upon exit.
- Formula: (Clock-out Time) - (Clock-in Time)
- The Objective: to serve as a "ceiling" for calculating the engagement rate. No productive hour can exceed this total volume.
🏭 Case Study: How Teconex Distinguishes Attendance from Actual Productivity
Context :
Teconex is the producer of the famous "Teco" (an essential Belgian reference for electrical connections since 1932), is also synonymous with quality and innovation in lighting and EV charging stations.
Problem
Relying solely on Logged Hours to measure productivity generated skewed data. Workers would sometimes forget to clock out after a task, causing the system to count time indefinitely. This created discrepancies that distorted costs and complicated justifications during social audits.
Idealis' Solution
Smart Analytics automatically cross-references Logged Hours (entry/exit) with Machine Hours (work order tracking). If an operator forgets to clock out, the time is automatically capped at the actual exit time or the contractual hours (resource calendar), whichever comes first.
Result
Teconex now has reliable, auditable labor data. Human error no longer impacts calculations or analysis. This factual traceability facilitates discussions with union representatives by relying on objective data rather than debatable estimates.
📊 Visualization : What Should Your Dashboard Look Like?
To manage this KPI, an Excel sheet isn't enough. Your Production Manager needs to see the information at a glance every morning.
With Smart Analytics, we model this KPI for maximum clarity:
- The Stacked Bar Chart:
- Visualize your Logged Hours (total bar) vs. Productive Hours (inner bar) over a week.
- The Goal: Ensure the "Productive" bar fills as much of the "Logged" bar as possible. The empty space between the two represents your pure loss (paid time not allocated to tasks).
- The "Absenteeism/Anomaly" Alert:
- A simple KPI Card that turns red if the total logged hours from the previous day are >5% lower than the theoretical schedule. This allows you to immediately anticipate production delays.
Note: This is an example of what we have co-built with clients. Every dashboard is tailored to the specific needs and processes of your organization.
Your Action Plan in 3 steps
How can you regain control over your Logged Hours starting tomorrow?
How Idealis Transforms Logged Hours into an Auditable Profitability Lever?
Logged Hours are the "raw material" of your workforce. Idealis reconciles your attendance and production data through Smart Analytics in Odoo to eliminate hidden costs and ensure the reliability of your performance indicators.
Coming up in our next article: We will explore how to transform hours worked into tangible added value using the KPI n°2 : Productive Hours. Les Heures Productives.
Do you suspect a gap between your paid hours and the reality on the shop floor? Our manufacturing consultants can perform a comprehensive audit of your HR and production data flows within Odoo.
Book Your Rapid Production Audit Below! 👇